Commercial Finance
Through our sister company, MB Commercial, we offer commercial mortgage advice to businesses, property investors and entrepreneurs. Our specialists take time to understand your plans and help you explore finance options suited to your circumstances.
Commercial borrowing to help you grow your business
If you’re a business owner or an entrepreneur, you’ll know commercial finance is not always straightforward. We’re here to help you find the right solution. We help businesses and investors explore commercial finance options, including commercial mortgages, semi-commercial mortgages, bridging loans and development finance.
Finding the right premises or investment property can take time. Whether you’re buying a shop, factory or industrial unit, or expanding your property portfolio, our commercial specialist advisers can help you understand your options and prepare for the application process.
Commercial mortgages work differently from residential mortgages. Lenders consider the property and its intended use, the strength of your business and the risks involved in your industry. Rates are often higher than for residential borrowing, and the terms available depend on your circumstances and the lender’s criteria.
Preparing your application
A clear, well-documented application can help lenders assess your plans. They will usually want to understand how your business is performing, why you need the finance and how you intend to repay it. Depending on your circumstances, you may be asked to provide:
- Two to three years of business accounts, including net profit
- Recent business bank statements
- An explanation of seasonal changes in income, where relevant
- Proof of identity and address
- A statement of assets and liabilities
- A business plan setting out the purpose of the loan, repayment strategy and financial projections
Each lender has its own requirements, and the documents needed will depend on the type and complexity of the application.
Deposits, terms and timescales
Many commercial mortgage lenders offer borrowing of up to around 75% of a property’s value, meaning you would usually need a deposit of about 25%. Some lenders may consider lending up to 80% in suitable cases, depending on the property, borrower and lender’s assessment.
Commercial mortgage terms can extend to 20 or 25 years with some lenders. The right term will depend on your plans, the property and what is affordable for your business.
A straightforward application may take around eight to 12 weeks from application to completion. More complex cases can take longer, so it’s sensible to allow time for the lender’s assessment, property valuation and legal work.
Finding a suitable lender
Commercial lending criteria can vary widely. An experienced commercial specialist can review your circumstances; explain what lenders may need and help you compare options. This can be particularly helpful when your business, property or plans don’t fit a standard lending model.
Through MB Commercial, our Commercial Specialist, James Watson, helps business owners and entrepreneurs explore their options. He studied Business and Economics and spent two years working in the City’s finance industry before qualifying as a mortgage adviser. James enjoys the problem-solving involved in commercial lending, where each client, property and transaction brings its own challenges.
If you’re considering a commercial mortgage, we’re here to help you understand the options and decide what may suit your plans.